Tue, 26 Aug 2008

From: The Jakarta Post

By The Jakarta Post, Jakarta
Australia's visiting agriculture, fisheries and forestry minister Tony Burke pledged Thursday to encourage Australian companies to increase investments in Indonesia's agriculture sector.

Burke said Australia and Indonesia had agreed to form a task force aimed at promoting Australian investment and cooperation in the sector.

"Any investment and cooperation will help the Indonesian farmers to increase its production capability so that it can deal with global food shortages," he said.

Australia, he said, was also involved in a capacity building program that provides training to help Indonesian farmers fulfill local production capacity.

"Some of the trainings have taken place in several Australian universities," he said.

Australia is among Indonesia's top 10 trade partners, with two-way trade reaching US$6.4 billion last year, up 11.11 percent from $5.76 billion in 2006.

Australia is Indonesia's major supplier of live cattle and wheat.

Last year, Indonesia recieved from its neighbor more than 520,000 cattle, valued at $339 million, and 1.5 million tons of wheat.

On Thursday, Burke met with Indonesia's Trade Minister Mari Elka Pangestu, Forestry Minister Malam Sambat Ka'ban and Finance Minister Sri Mulyani Indrawati.

The visiting minister will meet Maritime Affairs and Fisheries Minister Freddy Numberi on Friday.

Burke has also visited in Indonesia a cattle feedlot home to 22,000 cattle from Darwin, Australia, and also wheat flour producing firm Bogasari.

Sources at the Presidential Palace said Burke's visit was aimed at lobbying for greater market access for Australian products, especially cattle.

The Indonesian government has announced it will allow cattle imports from Brazil and India, sparking intense protests by local cattle importers who have fully established businesses with breeders in Australia and New Zealand.

Among Indonesia's biggest importers of Australian cattle and meat is a company owned by a senior minister of President Susilo Bambang Yudhoyono's cabinet. (ewd)